We briefly mentioned the foreclosure proceeds at the planned Nobu Hotel in the Financial District on Friday, but now that the confusing situation has had a few days to shake out, this much is clear: Lehman Brothers isn't going to let a little bankruptcy get in the way of its battle with troubled developer Kent Swig, and Swig isn't afraid to swing an ice bucket at the head of a wounded opponent. On Friday, the Observer reported that the still-existingish investment bank had filed to foreclose on 45 Broad Street, where Swig Equities and partners such as Robert De Niro planned to build 62 glassy stories of hotel rooms, condos, sushi and retail. The Nobu theme would extend beyond the restaurant and up through the building, kind of like a supersized version of Epcot's Japan exhibit. That would have been fun!
According to the complaint Swig borrowed $49.2 million in two separate loans, and despite three letters kindly asking for the money back, has yet to repay Lehman Brothers. Swig has previously blamed the slow machinations of Lehman's bankruptcy with holding up the Nobu Hotel and the condo conversion of 25 Broad Street, and in a series of updates to the Observer report (as well as Crain's' fresh attempt to summarize the fallout), it appears that Lehman's move was a response to Swig's own legal maneuvering against the bank, and a new round of Swig retaliation to Lehman's retaliation is imminent. Got that? Nah, us neither, but we're assuming our 8 p.m. resy at Nobu FiDi tonight is probably off.
· Lehman Begins Foreclosure on Swig's 45 Broad Street [TRE]
· Lehman moves to foreclose on developer [Crain's]
· Nobu Hotel, Like its Patrons, Will be Tall & Skinny [Curbed]
Loading comments...